04:48 PM
Connect Directly

Cablevision Boosts Broadband Speeds

The cable company plans to offer service with speeds of up to 50 Mbps. A slower service--downloads of 30 Mbps and uploads of 2 Mbps--is priced at $64.95 a month.

There's a speed war under way when it comes to Internet access, and the cable TV companies and phone companies keep upping the ante.

Cablevision Systems Corp. on Monday said it would boost speeds of its broadband Internet access service to up to 50 Mbps, five times faster than what it offers today and besting the top tier of Verizon's competing Fios service by 20 Mbps. Cablevision, the fifth-largest cable company in the country, serves large parts of the New York City metropolitan area.

The service comes relatively cheap, too. Although Cablevision hasn't disclosed pricing for the 50-Mbps service, it has for a slower service that offers download speeds of 30 Mbps and uploads speeds of 2 Mbps. That's still about 20 times the speed of a standard T1 line (1.5 Mbps), but is offered at a fraction of the cost: $64.95 a month for a current Internet-only subscriber. By comparison, Verizon's Fios costs $199.95 for 30-Mbps service. And it's cheaper than Comcast's $67.95 6-Mbps offering.

The aggressive pricing and high-speed offerings come at a point when cable TV and telephone companies are jockeying for an upper hand in the new playing fields of triple- and quadruple-play offerings that bundle voice, data, video, and wireless. "We're entering a new era, one that is changing what it means to become a communications carrier," SBC CEO Ed Whitacre told conference-goers in Las Vegas two weeks ago. "Our goal is becoming the only communications carrier you need."

Credit Suisse First Boston Corp. analysts reported last week that the cable companies' market share of broadband Internet users has shrunk 3% from just a year ago and is expected to shrink even further by 2010, while phone companies appear to be on the rise. Cable holds a 58% share of the broadband market this year, according to the Credit Suisse report. Both SBC Communications and Verizon have consumer DSL offerings priced as low as $15 a month.

Comment  | 
Print  | 
More Insights
2014 Next-Gen WAN Survey
2014 Next-Gen WAN Survey
While 68% say demand for WAN bandwidth will increase, just 15% are in the process of bringing new services or more capacity online now. For 26%, cost is the problem. Enter vendors from Aryaka to Cisco to Pertino, all looking to use cloud to transform how IT delivers wide-area connectivity.
Register for InformationWeek Newsletters
White Papers
Current Issue
Increasing IT Agility and Speed To Drive Business Growth
Learn about the steps you'll need to take to transform your IT operation and culture into an agile organization that supports business-driving initiatives.
Twitter Feed
InformationWeek Radio
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.